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Should retirees use their super to become debt free?

If you have retired and can access your super, is it a good idea to withdraw funds to pay off your outstanding home loan?

Where you have met a condition of release to access super, such as retiring after age 60 or turning 65 even if you are still working, you can start a pension income stream from your super. You can also withdraw lump sums from your super.

In this article, we discuss the two most common options in such a scenario:

  1. Withdraw a lump sum from your super to reduce or fully pay off your home loan (or keep it in your offset account) OR
  2. Keep making the loan repayments using your income sources such as the pension income stream, investment income and/or Age Pension.

Using case studies, we cover some of the key considerations retirees commonly face.

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